The question is how to get out of debt? Bankruptcy offers an individual or business the ability to make a fresh start when they find they have more debt than they can handle. However, this freedom comes with a price, which for some may be too high. It is important to understand how bankruptcy can help you with debt consolidation and avoiding actions like foreclosure and repossession, while at the same time affecting your credit which will make getting a loan more difficult and expensive.
These days, carrying debt, and large sums of it is quite common and for many it’s the only way to get by. Income has not kept pace with inflation for more than a decade and it’s no secret that the international tourist destination of Cape Cod boasts a higher than average cost of living for both residents and businesses. Couple this with an unforeseen situation such as an accident, illness, injury or disability, divorce, job loss/unemployment or just plain old poor budgeting, it’s no wonder someone may be facing bankruptcy.
Chapter 13 Bankruptcy Case Review
Situation: A typical scenario begins when someone may be over-extended on credit card debt. Or, they may have a tax burden. This common but unfortunate circumstance happens usually due to illness, job loss or divorce. This was exactly the case for Walter. “I thought I was going to lose my house through foreclosure.” Walter fortunately contacted Daigle Law Office early enough to make a difference even though he was already in contempt of court for not paying alimony. Walter was recently divorced and just diagnosed with Parkinson’s Disease. This put him behind on his taxes and alimony payments. He was also responsible for paying a $65,000 property distribution debt as part of the divorce. This is what ultimately drove Walter into Chapter 13 bankruptcy.
Outcome: Attorney Peter Daigle used Bankruptcy Chapter 13 rules to create structured payments for all debt over a 5-year period. This actually reversed the motion for contempt of court. As long as Walter continues to make his payments, he will not be in contempt of court. And the best thing is he will be relieved of the $65,000 debt.
Lesson Learned: DON’T WAIT. The sooner you can address a situation the more we can accomplish. Things can be retractable. You’ll have more rights if issues are identified early on and able to apply the proper bankruptcy situation or debt defense strategies.